{"id":388938,"date":"2022-01-03T14:22:00","date_gmt":"2022-01-03T11:22:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/yearn-finance-risks-pullback-after-yfi-price-gains-100-in-less-than-3-weeks\/"},"modified":"2022-01-03T14:22:00","modified_gmt":"2022-01-03T11:22:00","slug":"yearn-finance-risks-pullback-after-yfi-price-gains-100-in-less-than-3-weeks","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/yearn-finance-risks-pullback-after-yfi-price-gains-100-in-less-than-3-weeks\/","title":{"rendered":"# Yearn Finance risks pullback after YFI price gains 100% in less than 3 weeks"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a36eaa005c7a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a36eaa005c7a\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/yearn-finance-risks-pullback-after-yfi-price-gains-100-in-less-than-3-weeks\/#The_YFI_price_rally_so_far\" >The YFI price rally so far<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/yearn-finance-risks-pullback-after-yfi-price-gains-100-in-less-than-3-weeks\/#YFI_price_correction_risks\" >YFI price correction risks<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Yearn Finance risks pullback after YFI price gains 100% in less than 3 weeks <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Yearn Finance (YFI) looks poised for a price correction after rising five days in a row to <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roach $42,000. Notably, an absence of enough buying volume coupled with overbought risks is behind the bearish outlook.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_YFI_price_rally_so_far\"><\/span>The YFI price rally so far<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>YFI price surged by a little over 47% in five days to $41,970 as traders rotated capital out of &#8220;top-cap&#8221; cryptocurrencies like Bitcoin (BTC) and Ether (ETH) and looked for short-term opportunities in the altcoin market.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/DeFi?src=hash&amp;ref_src=twsrc%5Etfw\">#DeFi<\/a> assets are showing some nice signs of growth to kick off 2022. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24YFI&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$YFI<\/a>, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24UNI&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$UNI<\/a>, and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24AAVE&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$AAVE<\/a> are all ticking up nicely thus far with the first Monday of the year looking <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/bullish?src=hash&amp;ref_src=twsrc%5Etfw\">#bullish<\/a> for several <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/altcoins?src=hash&amp;ref_src=twsrc%5Etfw\">#altcoins<\/a>. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/8ujolCvt5z\">https:\/\/t.co\/8ujolCvt5z<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/ASpf1dUbtn\">pic.twitter.com\/ASpf1dUbtn<\/a><\/p>\n<p>\u2014 Santiment (@santimentfeed) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/santimentfeed\/status\/1477876631263928324?ref_src=twsrc%5Etfw\">January 3, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Yearn Finance was among the beneficiaries of the so-called capital migration, given its value against BTC and ETH rose almost 47% and 41.50% in just five days. Meanwhile, at the core of traders&#8217; sudden buying interest in the YFI markets was a token buyback program.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/ef954544-2604-4999-86e8-3e7a30857d1a.png\"><figcaption style=\"text-align: center;\"><em>YFI\/ETH and YFI\/BTC daily price performance after token buyback program announcement. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>On Dec. 16, the Yearn Finance team announced that they had <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/iearnfinance\/status\/1471507285016866822\">purchased more than $7.5 million worth of YFI tokens<\/a> from the open market at an average price of\u00a0$26,651 per unit. They also revealed $45 million extra cash in their Treasury that they would use to continue their YFI buyback spree.<\/p>\n<p>Additionally, the Yearn Finance community also proposed that the YFI treasury direct a portion of the token buyback to reward YFI holders who actively participate in\u00a0Yearn Governance. The proposal (full details <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/gov.yearn.finance\/t\/yip-65-evolving-yfi-tokenomics\/11994\/26\">here<\/a>) is currently in its voting phase.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">1\/8<\/p>\n<p>Since the cat is out of the bag here:<\/p>\n<p>-Yearn has started massively buying back YFI.<\/p>\n<p>-They are revisiting their tokenomics to do a fee distribution to holders, currently looking at veCRV model and xSushi models.<\/p>\n<p>-The ratios are insane. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/CzuHhbNuhx\">https:\/\/t.co\/CzuHhbNuhx<\/a><\/p>\n<p>\u2014 Adam Cochran (@adamscochran) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/adamscochran\/status\/1471518544944943104?ref_src=twsrc%5Etfw\">December 16, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>YFI price surged by more than 100% against the U.S. dollar after the token buyback announcement.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"YFI_price_correction_risks\"><\/span>YFI price correction risks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>However, YFI trading volume fell despite the rall, suggesting the low conviction among traders in its upward movement. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/f1b9b7f5-1a31-498e-9b69-06ca7e61b232.png\"><figcaption style=\"text-align: center;\"><em>YFI\/USD daily price chart featuring price-volume divergence. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Typically, a bearish divergence between price and volume leads to either\u00a0correction or consolidation till conviction increases. As a result, the likelihood of YFI at least pausing its ongoing price rally is high, with its daily relative strength index (RSI) also entering its overbought zone above 70, a sell signal.<\/p>\n<p><strong><em>Related:\u00a0YFI price gains 46% in just four days after Yearn Finance&#8217;s $7.5M buyback<\/em><\/strong><\/p>\n<p>Additionally, the Yearn Finance token&#8217;s latest price rally has brought it closer to a known inflection zone near $40,000, as shown via the Fibonacci retracement graph in the chart below.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/7090c3bd-424e-4955-b5a9-0acca4b1cf61.png\"><figcaption style=\"text-align: center;\"><em>YFI\/USD three-day price chart featuring Fib entry and exit levels. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>In detail, the 0.618 Fib line near $40,113 has been limiting YFI&#8217;s upside attempts intraday. The same level was instrumental in stopping the Yearn Finance token&#8217;s price rally between October and November, which later led the YFI price to its 12-month low near $17,000.<\/p>\n<p>Nonetheless, if the bulls manage to push the YFI price above the 0.618 line decisively, they may also take the token out of its multi-month range defined by circa $25,500 as support and $40,000 as resistance. In that scenario, YFI&#8217;s next upside target may move towards the 0.5 Fib line around $51,000.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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Notably, an absence of enough buying volume coupled with overbought risks is behind the bearish outlook. The YFI price rally&#8230;<\/p>\n","protected":false},"author":1,"featured_media":388939,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDEvNTYxZDM2MmEtNWM4NS00YzBhLWI0NjctZmVjNGJkYmUxODFlLmpwZWc=.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,88119,81262,74939,75164,78261,122013,73785],"class_list":["post-388938","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-altcoin-watch","tag-cryptomarket","tag-market-analysis","tag-price-analysis","tag-tech-analysis","tag-yearn-finance","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/388938","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=388938"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/388938\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/388939"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=388938"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=388938"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=388938"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}